Shell takes profit hit

The Royal Dutch Shell Group says the overstatement of its proven oil and gas reserves resulted in profits being exaggerated by US$276 million ($436 million), and "inappropriate" accounting in other areas resulted in profits being embellished by an additional US$156 million.

The revisions follow an embarrassing series of disclosures that in total reduced the company's reported reserves by nearly one-quarter and led to the departure of several top executives.